The man who predicted the financial crisis is warning about “silliness” in markets.
Michael Burry, the founder of Scion Asset Management who’s best known for betting against the housing market ahead of the 2008 crash, said Thursday that the “familiar Covid-era silliness is not dead yet.”
The Silliness is back. After 1929, after 1968, after 2000, after 2008, the strain of Silliness that transformed bulls into bubbles completely and utterly disappeared.
But that familiar COVID-era Silliness is not dead yet. Like 2001 before Enron, before 9/11, before WorldCom.
—Cassandra B.C. (@michaeljburry) August 4, 2022
It’s not entirely clear what Burry, who’s known for his cryptic tweets, is referring to. He compares this period in markets to 2001 before the Sept. 11 terrorist attacks and the Enron and WorldCom scandals, when the dot-com bubble was unwinding.
Burry has been predicting a plunge in stock prices for months. For a time, it looked like an accurate prediction, as the S&P 500 posted its worst first half since 1970. However, the gauge of US companies has since rallied 13% from its bottom in mid-June.
This article was provided by Bloomberg News.